2. Project Report on
Dezyne E’cole College
The Partial Fulfillment
Of 2nd Year Bachelor of Business Administration
Dezyne E’cole College
106/10 Civil Lines, Ajmer
I am Karishma Sharma student of bachelor of business administration of Dezyne E’cole College would like to
express my gratitude to each and every person who has contributed in stimulating suggestions and
encouragement which really helped me to coordinate my project.
I also thank Dezyne E’cole College who provided insight an expertise that greatly assisted the project. Also, a
special thanks to my teachers, parents and colleagues who have supported me at every step. Not to forget the
almighty who blessed me with good health because of which I worked more efficiently and better.
This project is based on Consumer Behaviour, that is the study of when, why, how and from where people do or
do not buy a product. It attempts to understand the consumer decision making process, both individually and in
groups. This study is based on Consumer Buying Behaviour, where the customer plays the three distinct roles of
user, player, and buyer. The characteristics of the individual customer such as demographics and behavioural
variables are studied in order to understand the people’s wants. It also tries to assess influences on the
customer from groups such as family, friends, references groups, and society in general. So understanding the
consumer behaviour is never simple. And understanding it, is very necessary for a successful marketer.
• An Introduction
• Chapter1- Overview Of Consumer Behaviour
• Chpter2- Stages of Consumer Buying Decision Process
• Chapter3- Techniques and Difficulties of Consumer Behaviour Research
• Chapter4- Factors Influencing Consumer Behaviour
It is widely accepted of business that to be more profitable and survive an organization must understand and stay close to its
consumers to provide products and services consumer will purchase. The study of consumer behavior provides us with reason why
consumers differ from one another in buying using products and services. We receive stimuli from environment and the specifies
the marketing strategies of different products and services and responds to the stimuli in terms of either buying or not buying
product. In between the stage of receiving the stimuli and responding to it, the consumer goes through the process of making his
The study of consumer behavior is very important to the marketers because it enables them to understand and product buying
behavior of consumers in the market place, it is concerned not only with what consumers buy, but also why they buy it, and how
often they buy it ,and also how they consume it and dispose it.
Consumers are created and maintained through marketing strategies. And the quality of marketing strategies depends on knowing,
serving and influencing consumers. The knowledge and information about a consumer is critical for developing successful
marketing strategies because it challenges the marketers to think about and analyses the relationship between the consumers and
marketers and the consumer behavior and the marketing strategies.
Consumer behavior can be defined as the behavior of individuals in regards to acquiring, using and disposing of products, services,
ideas and experiences. Consumer behavior also includes the acquisition and use of information. Thus, communication with
consumers and receiving feedback from them is very crucial part of consumer behavior which is of great interest to marketer.
7. CHAPTER 1 –OVERVIEW OF CONSUMER BEHAVIOUR
Consumer Behavior is the study that focuses on how, what, when, and why people buy. It is the study that blends elements
from psychology, sociology, anthropology, marketing and economics. It attempts to understand the consumer’s decision making
process, both individually and in groups based in economics and social decisions. It studies the characteristics of individual
consumer such as demographics, psychographics and behavioral variables in an attempt to understand people’s wants. Topics
under this study includes, nut are not limited to affect moods and emotions, explicit and implicit attitudes, social identity, self-
concept and self-presentation, attachment and commitments, trust and loyalty, consumer-marketer relationship, etc. It also tries to
asses influences on the consumers from groups such as family, friends, references groups, and society in general.
Importance of Studying Consumer Behaviour
May be the most challenging concept in marketing deals with understanding the consumer behavior that what they do and why they
do. But such knowledge is critical for marketers since having a strong understanding of consumer behavior will help to shed light on
what is important to consumer and also suggest the important influences on consumer decision making. Using this information, the
marketer can create marketing programs that they believe will be of interest to consumer.
Today, we need to study consumer behavior in detail, looking into the smallest nuances of it so as to identify what exactly
the consumer decision because in today’s times with so much of competition in every market segment we cannot afford to take the
consumer for granted. With the range of choice in every product, if the consumer’s desire is not looked after they will surely move
on to any one of the competitor.
There are following other importance to understand the consumer behavior:-
• It helps marketers to understand what a customer buys, why he buys, when he buys and from where he buys which helps
them to formulate an effective marketing mix (4 P’s)
8. • It helps to understand human behavior and various internal and external motives that influence human behavior. It helps
marketers to determine consumer needs, expectations, problems, preferences, etc. which helps them to estimates demand
for a products and services.
• It helps advertisers to understand how consumers react to different advertising appeals, thereby helping them to select the
appropriate media and advertising message for a particular target audience.
• It helps organization to analyses market opportunities and develop competitive strategies accordingly. It helps in rapid
introduction of new products.
• It helps to government to understand the social and economic trends in the country and formulate policies regarding price
control, subsidization, consumer protection etc.
Psychology of Customers
For making a successful marketing program it is necessary for a marketer to study the consumer behavior so that he would know
the attitudes, intentions, and desires of the customers.
Customer’s psychology has the following components:-
Knowledge is one type of information and on the basis of the knowledge the psychology of the customer develops. For
giving knowledge of the product to the customer promotion plays an important role
Attitude is a state of mind or feelings. It induces a predisposition to behave in some way. Attitudes are very important in
explaining buying behavior.
9. 3. Intentions
It means desire to do something. After knowing the intention of the customers, the marketing program can be formulated
and can be coordinated with the production.
It is the integral state, which detects the behavior of a pension. Some people call it urge because of the urge, the
person’s behavior is directed towards a particular cause.
10. CHAPTER 2- STAGES OF CONSUMER BUYING DECISION PROCESS
Search for Alternative
Evaluation of Alternatives
Post purchase Evaluation
Perceived difference between ideal
and actual state of affairs.
Seek relevant information about
potential solutions to the problem from
external environment, and activate
knowledge from memory.
The consumer now evaluates all
products and brands which satisfy his
Individual and team of buyers make
the final choice of what to buy and
from whom to buy it.
Use the chosen alternatives and
evaluate it again in light of its
11. 1. Problem Recognition
2. Information Searches
3. Evaluation of Alternatives
4. Purchase Decision
5. Post Purchase Evaluation
1. Problem Recognition
The need or problem, recognition stage of the buying process is often identified as the first and the most important step in
the customer’s decision process. If the consumer does not have a need for purchase, then nothing is bought. But if they
have a want which is recognition of an unfulfilled need and a product that will satisfy it then a purchase may occur. Usually
they want to purchase something is triggered by internal stimuli (such as being hunger and thirsty) and external stimuli (such
as advertising and word of mouth). Stimulus is a unit of input affecting the senses: insight, smell, taste, touch, or hearing.
2. Information Search
Once the need or the want to purchase something is identified, it’s a time for the consumer to seek information about
possible solutions to the problems. This is the stage where the buyer’s efforts is to search internal and external business
environment, in order to identified and evaluate information sources related to the central buying decisions.
Ex: say you want to eat out but you do not know where to go. So you an apps and you look up the best place around,
searching for good information about each place. There are two types of information searches that are available to the
customers. Internal information which is the information that is already presents in the customers memory. Thus, information
will come from previous experiences and opinions one may with a product or services. The second is external information
which is information in a product of brand received from and obtained by friends, family, or by review from other customers.
This is the process of seeking information from the outside world.
3. Alternative Evaluations
This is where the consumers weighs their options and seek the best decisions. Once the information is collected, a
consumer will use the information that they have to develop a set of criteria. The consumer will be able to evaluate the
12. different alternatives that are offered and be able to evaluate the most suitable for their needs and choose the one that is
best. As you might expect consumers will evaluate different products and brands at this stage on the basis of alternative
products attributes- those which have the ability to deliver the benefits the customer is seeking. The process will then lead to
what is “evoked set”. The “evoked set” is the setoff brands or products with the probability of being purchased by the
customer. Also, the information that the consumer was given earlier in the process such as the internal and external
information, will help consumer evaluate and compare alternatives.
4. Purchase Decision
This is when the customer ultimately decides to make the purchase of a product. The purchase is influenced by all the steps
prior such as research and word of mouth. However, the customer buying decision process can be disrupted by other thing.
Ex: if someone wants to buy a new IPhone X and they get word that newest IPhone X is not functioning well, it may disrupt a
consumer’s mindset of purchasing the product. In the end, the consumer has to decide whether to buy or not.
5. Post-purchase Evaluation
After the purchase has been made and the product has been used, the consumer will evaluate whether it was worth buying.
When something is purchased, people will expect certain outcomes or ways something should be from the purchase. The
consumer will either feel sense of satisfaction from buying the product and disappointed because it has not meet
Ex:-if the product brought to the satisfaction to the customer, they will then minimize the stages of information searches and
alternative evaluation for his next purchases in order to buy the same brand, which will produce customer loyalty. But if the
product does not meet expectations, the customer will repeat the 5 stages of the consumer decision making process when
making a new purchase. This is where cognitive dissonance comes in which an inner tension that a consumer experience
after recognizing an inconsistency between behavior, values or opinions. But no matter what, companies should be careful
to create positive post purchase communication, in order to engage customers and make the process as efficient as possible
creating customer loyalty.
13. CHAPTER 3- TECHNIQUES AND DIFFICULTIES OF CONSUMER BEHAVIOUR RESEARCH
Some of the Techniques of Consumer Behaviour Research:-
1. Experience and knowledge
3. Depth Interview
4. Projective Tests
1. Experience and Knowledge
This method refers to the estimation and assessments of the consumer’s traits and approach to the buying habits on the
basis of knowledge and experience gained by the marketing- personnel through day- to-day dealings with the consumers.
Through a regular contracts and rapports, the marketer come to know the different buying like motives, quality, convenient,
comfort etc. expressed directly and indirectly by the consumers. The result, after appropriate analyses and interpretation,
give guidance for decision actions or the marketing activities like distribution, pricing etc.
This method involves the preparation of carefully worded questions by the marketing executive on various pertinent aspects
relating to the product, its features, prices, specialties etc. These questionnaires then mailed to the selected groups of
consumers in different market segments for their feedback information.
Such information are then meticulously analyses with a view to understating the consumer’s behavior and attitudes.
3. Depth Interviews
It refers to the close rapport and free discussion for the purpose of exchange of views and ideas on the products and
services between the marketer (the interviewer) and the consumer (the interviewee).
14. In this method both the parties open their minds and unfold the truth even going to the subconscious state of mind. The
process of sensation-intention-thinking-feeling on the part of the interviewer and interviewee can figure out the reasons for
particular attitude and behavior.
4. Projective Tests
There are various methods of applying these tests for the study of consumer behavior. In projective tests, a stimulus
situation projecting the inner aspects of a consumer and personality is created concerning a product or services opportunity
to express his needs and his reactions.
Difficulties of Consumer Behaviour Research
• A consumer may have multiple buying motives and is unable to express his main motive. This poses a challenge to the
researcher in the identification of the basic buying motive.
• A consumer may hesitate to explain his buying motive or give a misstatement of his motive. This misleads the researcher to
identify the real motive of buying.
• A consumer may be so ignorant that he cannot understand his inner urge that prompts him to buy or not to buy. The
researcher does not get any clue to identify the buying motive.
• A consumer’s personality, his behavioral attitudes, beliefs and values undergo change in socio-psyche-economic structure.
15. Chapter 4- Factors Influencing Consumer Behaviour
Some of the Factors that Influencing the Consumer Behavior:-
16. I. Psychological Factors
The human psychology plays a crucial role in
designing the consumer’s preferences and likes
or dislikes for a particular product and services.
Some of the important psychological factors:-
It is an internal state that drives us to satisfy
needs. Motivation is the reason or reasons for
engaging in a particular Behaviour, especially
human behavior. These reasons may include
basic needs or desired objects, hobbies, goals,
state of being, or ideal, what does is, it exert a
push towards actions that satisfies the needs,
which in most of the cases leads to a purchases.
A theory of human motivation and is commonly known as Maslow’s Hierarchy of Needs, represented as a pyramid with the
more primitive needs at the bottom. The higher needs in this hierarchy only come into focus when the lower needs in the pyramid
18. • Physiological Needs: these are the basic human needs for such things as sex, warmth, water and other bodily needs.
• Safety Needs: after the first level of the needs are satisfied, the safety and security needs become the driving force behind
an individual’s behavior. They include order, stability, routine familiarity; control over once life and environment, and the
certainty- the knowledge.
• Social Needs: This level of hierarchy include such needs as love, affection, belongingness and acceptance. People seek
warm and satisfying warm and human relationships with other people and are motivated by love for their families. Because
of the importance of the social motives in our society, advertisers of personal care products often emphasize of this appeal in
• Self-Esteem Needs: These needs can take either an inward or an outward orientation or both. Inwardly directed ego needs
reflect an individual needs for self acceptance, for self esteem, for success, for independence, for personal satisfaction with
a job well done. On the other hand, outwardly directed ego needs for prestige, reputation, status, recognition from others.
• Self Actualization Needs: This need refers to an individual’s desire to fulfill his potential to become everything he is capable
It is the process of attaining awareness or
understanding of sensory information. It also helps
to influence the buyers buying decisions. For us it is
the process by which consumers select, organize,
interpret, information regarding the product. The
consumer is first exposed to the product through various mediums used to grab his attention; the consumers then interpret
what have been shows to him/her about the product and form his views or perception of the products.
Exposure Attention Interpretation
19. Ex: Apple IPhone is perceived as a premium brand and consumers are motivated to buy it to get associated with the elite
class of the society.
The individual learning depends on the skills, knowledge, and intension. The skills are developed through practice while the
knowledge and intentions are acquired with the experience. There could be a conditional learning o a cognitive learning. In
the conditional learning, the consumer derives learning from being conditioned tp particular stimuli, i.e. when he is exposed
to the similar situation, again and again, he develops a particulars response towards it. While in the cognitive learning the
individuals applies all his knowledge, skill, attitude, values and belief to find the solution of a problem and derive satisfaction
out of it.
4. Attitudes and Beliefs
The Individuals have certain beliefs and attitudes towards products on which their purchase decisions rests. These attitudes
and beliefs are the tendency o responds to a given product in a particular way, and these make up the brand image that
influences the consumer buying behavior. Thus, the marketer try to understand the attitudes and beliefs of the individuals
and modify these through a several marketing campaigns.
I. Social Factors
The social factors are the factors that are prevalent in the society where
a consumer live in. the society is composed of several individuals that
have different preferences and behaviors. These varied behaviours
influence the personal preferences of the other set of individuals as they
tend to perform those activities which are acceptable to the society. The
following are the important social factors that influence the consumer
20. 1. Family
The family members play a crucial role in designing one’s preferences and behavior. It Offers an environment where in the
individuals evolves, develop personality and acquire values. A child develops his buying behavior and preferences by his
parents and tends to buy the same product or services even when he grows old. The family can influence the buying
behavior of an individual in either of the 2 ways:-
i. Influences the personality, attitude, beliefs, and characteristics of the individual.
ii. Influences the decision making of an individual with the respect to the purchase of certain goods and services.
1. Reference Groups
A reference group is a group with which an individual likes to get associated, i.e. want to be called s a member of the group.
It is observed, that all the members of the references group share common buying behavior and have a strong influences
over each other. The marketers should try to identify the roles within the references group that influences the behaviors of
others. Such as Initiator (who initiates the buying decisions), Influencer (who has the authority to take the purchase
decision) and Buyer (who ultimately buy the product).
2. Roles and Status
An individual’s position and role in the society also influences his buying behavior. Such as, a person holding a supreme
position in the organization is expected to purchase those items that advocate his status. The marketer should try to
understand the individual’s position and the role very much before the endorsement of the products. Thus, the social factors
play a crucial role in building the behavior of n individual, and the marketer should understand it properly before designing
their marketing campaigns.
II. Cultural Factors
The cultural factors are the factors that an individual learns at a early stage of life due to the socialization within the family
and other key institutions, such as the set of values, preferences, behavior patterns, and perceptions are learned as the
individual grows. Some of the important cultural factors are:-
21. 1. Culture
The culture refers to the beliefs, customs, rituals, and practice that a particular group of people follows. As country child
grow, he inculcates the buying and decision making patterns through his family and the key institutions. The culture varies
from region to region and even from country to country. Such as, the sale of “sarees” and “lungis” is more in south than the
north India. Therefore, the marketer should carefully study all the different cultures and frames the marketing strategies
The culture can be further divided into subculture wherein the people are classified more specifically on the basis of their
shared customs and beliefs, including religious, geographic regions, nationalities etc. The different sub-cultures forms
several market segments whose needs can be carefully studied by the marketer, and the strategic marketing decisions can
be taken accordingly.
22. 3. Social Class
The social class to which an individual belongs influences the buying decision. Generally, the people belonging to the same
class are said to be sharing the similar interest, values and the behaviours. Our society is classified into three social classes’
upper, middle and lower class. The consumer belonging to these classes possess different buying behavior. Such as an
individual belonging to the upper class buy those products or a service that advocates his status while the lower class people
buy those products which satisfy their basic needs.
III. Personal Factors
The personal factors are the individual factors to the
customers that strongly influence their buying
behaviours. These factors vary from person to person
that result in a different set of perceptions, attitudes and
behaviours towards certain goods and services. Some
of the important personal factors that influence the
The income of the person influences his buying
patterns. The income decides the purchasing power of
an individual and thus, the more the personal income,
the more will be the expenditure on other items and
The occupation of the individual also influences his buying behavior. The people tend to buy those products and services
that advocate their profession and role in the society. Such as, the buying patterns of the lawyer will be different from the
other groups of the people such as doctors, teacher, businessman, etc.
23. 3. Age
The consumer buying behavior is greatly influenced by his age i.e. the lifecycle stage in which he falls. The people buy different
products in different stages of the life cycle. Such as the purchase of confectionaries, chocolate is more when an individual is a
child and as he grows his preferences foe the products also changes.
The consumer buying behavior is influenced by his lifestyle. The lifestyle means individual’s interest, values, opinions and
activities that reflect the the manner in which he lives in the society. Such as, if the person has a healthy lifestyle then he will
avoid the junk food and consume more of organic products.
IV. Economic Factors
The Economic factors are the factors that talk about the level of
the sales in the market and the financial position of the
consumers i.e. how much an individual spends on the purchase of
goods and services that contribute overall sales of the company.
The following are main economic factors that greatly influence the
consumer buying behavior:-
1. Personal Income
The personal income of an individual influence his buying
behavior as it determines the level to which the amount is spent
on the purchase of goods and services. The consumer has two
types of personal incomes disposable income and discretionary
income. The Disposal Personal Income is, the income left in
hand after all the taxes, and other necessity payments has been
24. made. And the Discretionary Personal Income is the income left after meeting all the basic necessities of life and is used
for the purchase of the shopping goods, luxuries, and durable goods tec. An increase in the discretionary income results is
more expenditure on the shopping goods through which the standard of living of an individual gets improved.
2. Family Income
The family income refers to the aggregates of the sum of the income of all the family members. The total family income also
influences the buying behaviors of its members. The income remaining after meeting all the basic necessities of life can be
used for the purchase of shopping goods, luxury items, durable goods etc.
3. Income Expectations
individual’s expectations with respect to his income level in the level in the future influence his buying behavior today. Such
as, if a person expects his income to increase in future, then he will spend more money on the purchase of the luxury goods,
durable goods and shopping goods. And on the other hands, if he expects his income to fall in the future his expenditure on
such items also reduces.
4. Consumer Credit
The Credit facility available to the consumer also influences his buying behavior. If the credit terms are liberal, then the
customers are likely to spend more on the luxury shopping and durable goods. This credit is offered by the seller either
directly or indirectly through the banks and the other financial institutions.
5. Liquid Assets
The liquid assets with the consumer also influence his buying behavior. The liquid assets are the assets that are readily
convertible into the cash. If the customer has more liquid assets, then he is likely to spend more on the luxury items etc. On
the contrary, if the liquid assets are few, then the expenditure on the luxury items also reduces.
25. 6. Savings
The amount of savings out of the personal income also influences the consumer buying behavior. Such as, if the customer
decides to save more for a particular period, then his expenditures on t e other items will be less and in case the savings are
less the expenditure on the other items increases.
As mentioned in the beginning it is impossible to define consumer behavior in quantitative parameters, what I
have tried is to develop an understanding of consumer thought process and his reactions when exposed to
different products under different conditions. As marketers it is imperative to understand what the consumers’
expectations are from a product, and how he will react to a marketing initiative taken by you and your team. To
understands consumer’s reactions one must consider various factors that influence the consumers mindset-
both within our control and the once not under a control. And acute understanding of these influences can go a
long way in successfully marketing a product.
We begin with the consumer realizing that there is a need, takes action to fulfill the need, He makes a
decision and makes a purchase to fulfill his desire finally after the purchase the customer will evaluate the
product as to whether it satisfy him or not, if yes then he again use the product and eventually becomes a loyal
consumer and that is when a marketer attains his goals.
When the consumer is undergoing the above process, he tends to get influence by various factors. These
factors are mainly divided into five categories-psychological, social, cultural, personal and economic. A good
marketer will know these influences and how to regulate them to attain his goal.